Tax Courts Rules to Seek Professional Tax Help

Latest Market Watch

1 DOW 10,447.93

+127.83 (1.24%)

2 S&P 1,104.51

+14.41 (1.32%)

3 NASDAQ 2,233.75

+33.74 (1.53%)

4 LBAS 0.14

0.000 (-0.36%)

Camarillo Weather

57°

14°

°F | °C

Cloudy

Humidity: 94%

Wind: N at 0 mph

Sun

56 | 74

13 | 23

Mon

54 | 71

12 | 21

Tue

55 | 69

12 | 20

Important Links

Latest Blogs

Saving Lives

Riders University is a
Public Charity dedicated
to saving lives

Riders University
Consider making a tax deductible
donation today.

Search Our Blog

Tax Courts Rules to Seek Professional Tax Help

Written by Mike DiSabatino

Wednesday, 19 May 2010 14:27

TurboTax Problems No Defense to Penalties

The U.S. Tax Court on April 19, 2010 held certain defendants liable for accuracy-related penalties despite the fact they were apparently using the so-called “Timothy Geithner signature edition” of TurboTax (Lam v. Commissioner, T.C., No. 13302-08, T.C. Memo. 2010-82, 4/19/10).

According to the Court, “We do not accept petitioners’ misuse of TurboTax, even if unintentional or accidental, as a defense to the penalties on the basis of the facts presented.”

At trial, the taxpayer did not attempt to show a reasonable cause for her underpayment of taxes. Instead, she analogized her situation to that of the Secretary of the Treasury, Timothy Geithner. Citing a Wikipedia article, Ms. Lam essentially argued that, like Secretary Geithner, she used TurboTax, resulting in mistakes on her taxes.

“Although the Court concludes the errors in petitioners’ tax preparation were made in good faith, petitioners have not established that they behaved in a manner consistent with that of a prudent person” said the Court. One thing a prudent person could do according to the Court? “Seek the help of a tax professional.…”

Well, the Tax Court should know and we thought you should as well!

Last Updated on Wednesday, 23 June 2010 16:58

Tax Preparation Services

taxes DiSabatino, CPA offers tax preparation for individuals, businesses, non-profit entities, estates and trusts. Our experience expands beyond California to all US States and multi-State tax returns.

DiSabatino, CPA utilizes a statistical approach to tax preparation. We measure your tax return against the information provided by the IRS to gauge your possibility of an audit, before you file the return. This allows us to discuss alternative approaches reducing your chance of audit.

Call DiSabatino, CPA when you need tax preparation help to minimize your tax burden and reduce your chance of audit!

Bookkeeping Services

Bookkeeping is a necessity for your business. It is the foundation for tax savings, business planning, cash flow and your daily operations.

DiSabatino, CPA does not offer these basic services, but we are now happy to offers a complete bookkeeping package through the local bookkeeping firm, Sharp Bookkeepers. They have QuickBooks Pro Advisors and a staff that is capable of maintaining your business books, compliance tax returns (sales tax, business licenses, workers comp insurance) and payroll.

DiSabatino, CPA will provide tax advice, tax preparation and business consultation for all clients of Sharp Bookkeepers.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code. Please make an appointment to discuss your particular situation for proper advice.